Highest-ever Investment Inflow into Indian Real Estate in 1H 2017

Debt, equity
investments from 2014-1H2017 together stand higher than INR 98,000cr; outdo the
total inflows of INR 95,000cr seen between 2003 and 2013

by Mr. Shobhit Agarwal, JLL India

As far as investment
inflows into Indian real estate are concerned, 2017 seems to have set a new
milestone. The total investment (in INR cr) in 1H 2017, which stands at
more than INR 16,000cr, is the highest ever seen in any year’s first half. It
has not only exceeded the 1H 2007 but also 1H 2016. Given the scale, 2017 seems
set to break all previous investment records.

Year

PE inflows (in INR cr)

1H2007

13,067

1H2016

15,601

1H2017

16,008

Source: JLL
Capital Market Research

A slew of reforms
unleashed by the government is changing the investment scenario in the country
and has made India one of the most attractive emerging markets, from the
investment point of view.

So much so that a comparison between the debt and
equity investments seen between 2014 and 1H2017, which stand at more than Rs. 98,000 cr, are higher than the Rs. 95,000 cr seen during an entire decade from
2003 to 2013.

Big bang policy reforms, economic and political
stability, liberalisation of the FDI policy and the resultant improvement in
the investment community’s sentiment are some of the factors working in Indian
real estate’s favour.

GST, RERA, REITs, the Benami Property Act, demonetization
and constant focus on affordable housing will lead to the sector evolving into
a more mature, consolidated and highly transparent industry. This, in turn, is
expected to attract further private equity from abroad.